Head-To-Head Analysis: BAE Systems (BAESF) & Its Peers

Institutional & Insider Ownership

40.7% of BAE Systems shares are owned by institutional investors. Comparatively, 50.1% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

BAE Systems pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. BAE Systems pays out 347.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.0% and pay out 41.5% of their earnings in the form of a dividend. BAE Systems lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares BAE Systems and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BAE Systems	N/A	N/A	491.66
BAE Systems Competitors	$8.74 billion	$588.60 million	26.21

BAE Systems’ competitors have higher revenue and earnings than BAE Systems. BAE Systems is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares BAE Systems and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BAE Systems	N/A	N/A	N/A
BAE Systems Competitors	-246.33%	-116.74%	-4.64%

Summary

BAE Systems competitors beat BAE Systems on 5 of the 9 factors compared.

About BAE Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.